Islamabad: MCB Bank Limited announced a record first-half profit before tax (PBT) of Rs. 62.7 billion, marking a 16% increase over the previous year. This growth is primarily attributed to the bank's successful management of its deposit base and earnings assets. The Board of Directors, under the chairmanship of Mian Mohammad Mansha, also declared a second interim cash dividend of Rs. 9.0 per share, bringing the total dividend for the half-year to 180%.
According to MCB Bank Limited, the bank's profit after tax (PAT) grew by 20% to Rs. 31.9 billion, resulting in earnings per share (EPS) of Rs. 26.95, up from Rs. 22.52 in the corresponding period last year. The bank achieved this performance through strong growth in average current deposits and effective repositioning within its asset book, which led to a 12% increase in net interest income year-over-year.
Non-markup income saw a significant increase of 30% to Rs. 18.3 billion, driven by higher fee commission, foreign exchange, and dividend incomes. Fee-related revenues from trade and guarantee business, card operations, and other banking services showed notable increases, supporting the bank's diversified income streams.
Operating expenses climbed to Rs. 28.4 billion, reflecting an 18% increase, influenced by higher staff, utility, and IT-related costs. Despite these increases, the bank managed to maintain a cost-to-income ratio of 30.50%, only slightly up from the previous year.
The bank also reported substantial growth in its asset base, which reached Rs. 2.67 trillion, a 10.1% increase since December 2023. This growth was supported by a 19% increase in its investment base and a 6% rise in gross advances. Moreover, MCB continued to build its no-cost deposit base, which grew by Rs. 110 billion, or 13%, in the first half of 2024.
In terms of regulatory compliance and financial stability, the bank's Capital Adequacy Ratio improved to 20.68%, well above the required 11.5%. Its liquidity and funding ratios also remained robust, showcasing the quality of the bank's capital and its prudent management of financial resources.